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Credit Card Bill Calculator
Calculate your credit card payments and understand the impact of different payment amounts
₹
% p.a.
%
₹
Monthly Payment
₹5,000
Minimum Required: ₹5,000
Time to Pay Off
2 years 7 months
Total Interest
₹54,995
Payment Breakdown
Principal: 64.5% Interest: 35.5%
Understanding Credit Card Bills
Credit card bills can quickly accumulate interest if not paid in full. Understanding how minimum payments work and their impact on total cost is crucial for managing credit card debt.
Key Terms:
- Minimum Payment: Lowest amount required to keep account in good standing
- Grace Period: Time before interest is charged on new purchases
- Annual Interest Rate: Yearly interest rate (typically 24-48% p.a.)
- Statement Balance: Total amount owed at statement generation
- Available Credit: Credit limit minus current balance
Payment Strategies:
- Pay full balance to avoid interest charges
- Pay more than minimum to reduce interest cost
- Use grace period effectively
- Set up automatic payments
- Track spending to avoid overlimit fees
Example Calculation:
For a balance of ₹1,00,000 at 36% p.a.:
- Minimum Payment (5%): ₹5,000
- Monthly Interest: ₹3,000
- Time to Pay Off: 3 years 2 months
- Total Interest: ₹89,432
- With Additional ₹5,000: Pay off in 1 year 3 months
Important Note:
Making only minimum payments can result in long repayment periods and significant interest charges. Consider paying more than the minimum whenever possible to reduce the total cost and time to become debt-free.